Dead Kennedys regretfully announces
that as of October 1, 1998, they are terminating their business relationship
with Alternative Tentacles Records (ATR). Three of the four members of
the band - guitarist East Bay Ray, bassist Klaus Flouride and drummer
D. H. Peligro voted on September 30, 1998 to sever ties with the label
due to serious problems with the accounting to Dead Kennedys and the inability
of the parties to settle the matter over the past nine months.

Dead Kennedys created Alternative
Tentacles in 1983 with the explicit aim of treating every artist fairly
and equally. ATR was an example that a group of upstart punk musicians
could create and sustain an independent record label different from the
majors. Jello Biafra took over sole ownership of the label in 1986.

Recently, it was discovered that for
the past 10 years ATR was paying Dead Kennedys without their knowledge
or consent less per CD than the other artists on the label. Although claims
for royalty underpayment have been presented to ATR, no satisfactory response
was received, thus setting the stage for yesterdays action by the
partners.

Although invited to attend the meeting
where the fate of ATRs distribution relationship was decided, Jello
Biafra was not present. According to his attorney, he was out of
town.

After their long association, the
decision to leave Alternative Tentacles was a very difficult one for Dead
Kennedys to make. However, after extensive negotiations between the parties
and their attorneys failed to produce tangible results, it was inevitable.

Dead Kennedys intend to continue to
operate as a partnership with Jello Biafra. Future distribution for the
partnership recordings will be established and announced shortly. It is
hoped that no interruption will occur at the retail level with respect
to the availability of Dead Kennedys albums due to yesterdays action.